Costa del Sol’s Attractiveness to American Prime Homebuyers

Spanish high-end residential is optimistic about the increase in US travellers.The Costa del Sol has established itself as a preferred destination for American investors thanks to its unrivalled offer of luxury, security and quality of life. 

Increased American Interest

According to Ana White, Director of Premium Residential Properties at Knight Frank Spain, US investment in prime housing has grown significantly, from being testimonial in 2018 to representing 4% of purchases by 2024. The quality and price of properties in Spain make this destination very attractive for American investors. They are looking for security, a strategic position in Europe and a rich cultural and leisure offer.

Preferred Destinations: Madrid, Barcelona and the Costa del Sol

Although Madrid and Barcelona are the most popular cities among American investors, the Costa del Sol stands out as one of the favourite destinations for luxury properties, especially in the Golden Triangle (Marbella, Estepona and Benahavis), where investments have increased significantly.

Factors Attracting American Investors

• Direct Connections: The increase in direct routes, such as the United Airlines flight between Malaga and New York, has facilitated access to the Costa del Sol.
• Climate and Lifestyle: With over 300 days of sunshine a year and a high standard of leisure and gastronomy, the region is a magnet for those seeking quality of life.
• Security and Affordability: Compared to the USA, the Costa del Sol offers a secure environment and attractive property prices.
• Cultural and Health Offer: The region has a rich cultural offer and first class health facilities, both public and private.

Profile of American Investors

• Families: They are looking for holiday homes to enjoy the climate and security.
• Rental Investors: Interested in holiday or long term rentals.
• Wealth Investors: Looking for prime locations that will appreciate in value over time.
• Commercial Investors: Companies and investment funds that are committed to large-scale tourism projects.
• Diversification: They invest in the real estate market as a way of diversifying their portfolio.

Outstanding Projects on the Costa del Sol

The super prime housing segment, with properties in excess of one million euros, is the most attractive for North American investors and of course very sophisticated concepts such as Branded Residences . Marbella has several 'Branded Residences' projects where different top brands offer exceptional homes:

• Tierra Viva by Automobili Lamborghini.
• Epic Marbella by Fendi Casa.
• Marea by Missoni Luxury.
• Marbella Design Hills Dolce & Gabbana.
• Karl Lagerfeld Villas Marbella.
• Elie Saab Marbella .
• Angsana Real de La Quinta: First project of the Banyan Tree Group in Spain.
• The Gallery by Minotti.
•  Wyndham Grand Residences at La Cala Golf.

According to Pia Arrieta, Partner and Managing Director of DM Properties Knight Frank, "The branded residences market in Marbella is flourishing. Internationally renowned luxury brands  are establishing a strong presence here. Our clients consistently tell us that while a brand’s unique design and décor are important, the main reasons for purchasing a branded residence include the additional services and amenities. These often feature sports and wellness facilities, concierge services, and high-level management, aligning with the expectations of such prestigious brands."

Most Demanded Areas

• Premium Urbanisations: La Zagaleta and El Madroñal are highly sought after for their exclusivity and natural surroundings.
• Frontline Beach on the Golden Mile: Properties in this area are in high demand, as are branded residences.
• Estepona: The most ambitious town in recent times has seen a significant increase in US investment.

Pia Arrieta, 01 Jul 2024 - News